Investment Q&A

Q: NVDA has been kind of left in the dust this year, up "only" 39%. LRCX, though, is up 90%, WDC is up 185% and SEA is up 190%. All good for me since I own all four but I'm wondering why the market seems to have turned away from NVDA. Especially in the last month, SEA and WDC are up 48% and 58% respectively, in the last thirty days.

Q: We hold most of the 5i Balanced and some of the income portfolio stocks plus the fallowing us stocks. amzn, brk.b, cost, goog, isrg, lly, msft, nvda, smci, vrt, v. Berkshire is over 8% and the others are 5% please suggest a couple of us names to add to this portfolio. or any to trim. ( US is a growth portfolio ).
Thank you for your superb service over more than 10 years. Ian

Q: I am in the process of sending my daughter funds to start a TFSA. She deals with Royal Bank. Can you suggest what is best for her to start. Mawer Mutual Funds or GIC's, or? Any suggestions would be greatly appreciated!
Thank you Gordo

Q: Hi Folks,
I sold some CSU recently. I now have MSFT, NVDA, AAPLE and some CSU as holdings in the Tech Sector( GOOG and AMZN as well). Can you suggest a couple of Tech stocks that I could add to my holdings in the Tech Sector. This would be in my TFSA.
Thanks

Q: Is Nvidia and PLG a buy?

Q: Hi Folks,
CSU or NVDA-which one is the best buy today for a growth oriented TFSA.
Thanks

Q: Knowing that portfolio weights are personal to each individual, what would be your highest comfortable weight for each of NBIS and NVDA if it were YOUR portfolio.
Thanks

Q: hi folks, with Nvidia's $100B investment in A.I. .....besides the obvious players like Coreweave, Nebius, Glxy, Tssi, etc...can U recommend any smaller players, flying under the radar, that 5i like/hold....or would you stick with, and add to the main players...thanks as always, jb

Q: Hi Peter,

Thank you for your answer. I would appreciate it if you could answer the second part of my question as well.

"Q: Hi Peter,

I have a question about Nvidia’s proposed $100 billion investment in OpenAI. From my understanding, the funds will be used to purchase Nvidia’s own GPUs. How should investors interpret this circular funding in terms of valuation integrity and long-term sustainability? Does it raise red flags about inflated revenue or distorted market signals? Considering the deep entanglement between Nvidia, OpenAI, and Microsoft, at what point does this trio resemble a functional monopoly in the AI ecosystem? If it walks and quacks like a duck, it is a duck! Is it time for regulators or competitors like Google and AMD to step in and balance the power? I doubt the government knows or will to do anything. I would love to hear your perspective.

Best,
Matt


5i Research Answer:
Certainly NVDA is trying to tie up the ecosystem, that we are fairly sure of. It wants to control the datacentre market, which of course means a captured market for its GPUs. It is a virtous cycle (invest in a company, it buys chips, sells out space in its datacentre, and gets cash flow to buy more space). However it does rely on incremental demand, and this could be a problem. CRWV, for example, is using debt for much of its funding, and this could certainly backfire when demand slows. For now, it is an arms race, though, with insatiable demand requiring massive funding. NVDA has the ability to fund these companies. However, it does not have $100B sitting around. It will come over time (the deal right now is just a letter of intent). NVDA has said that, in a $10B data centre, as an example, it would sell about $3B of GPUs to it. It is not quite a 100% 'selling to itself' as some believe. But it is a circular event, and some accuse NVDA of essentially funding sales to itself. It is more than this, but does carry risks. "

Best,
Matt

Q: Hi Peter,

I have a question about Nvidia’s proposed $100 billion investment in OpenAI. From my understanding, the funds will be used to purchase Nvidia’s own GPUs. How should investors interpret this circular funding in terms of valuation integrity and long-term sustainability? Does it raise red flags about inflated revenue or distorted market signals? Considering the deep entanglement between Nvidia, OpenAI, and Microsoft, at what point does this trio resemble a functional monopoly in the AI ecosystem? If it walks and quacks like a duck, it is a duck! Is it time for regulators or competitors like Google and AMD to step in and balance the power? I doubt the government knows or will to do anything. I would love to hear your perspective.

Best,
Matt

Q: Hello Team,
Could I have three "AI Hardware" names to own now please.
Thanks!

Q: What do you think of AMD after the announcement of the new Nvidia/Intel partnership? If I understand correctly, it could it affect both AMD’s data center revenue and gaming revenue. My son, who is a gamer, still thinks AMD will do well in the gaming area. But with the US federal government taking a stake in Intel and now the partnership with Nvidia, it seems like AMD is being ganged up on on! Would you continue to hold or sell? Thanks.

Q: I am considering selling my nvda and buying goog or qucom to replace. Please advise if this is good or any other replacement for nvda.
Cheers , Doug

Q: Announcement today by Nvdia taking a $5 billion stake. I own AMD which is down on this announcement. . Switch from ADM to Intel make sense?

Q: Hi 5i
With respect to previous response to michaels intel question july 31 , Does the Nvda announcement of taking $5B stake in the company change your view? Share price has responded quite positively today.
Would 5i be interested in intel now going forward.

In addition AMD seems to have responded negatively to this news...how do you see this affecting its SP going forward and would you continue to hold AMD?
thx

Q: There has been a huge run in the AI related stocks which your service has nailed. Thank you! Are there other sectors that you think have growth and upside right now, and why? If you have a sector(let's say gold, or consumer, etc), could you give a couple names US and CDA as well? Or should I just look in your portfolios for your picks?

Q: Can you explain how Nebius expects to become profitable, and when?

Despite the nice Microsoft contract, its business has very high capital expenditures to pay for data centres, latest GPUs, power, humans, etc. I wonder about things like how much cash it has, how long that will last, the cost of its capital, how it raises capital, the risk of inflation on costs, etc. I also wonder if it's other businesses (Toloka, Avride, Triple 10 and Clickhouse) are at all priced in, and whether any of these would possibly be spun out.

Any further insights you might have would be appreciated.

Q: I have owned MRVL since the early days of the tech growth story. I felt it would be one firm that could grow their business exponentially as the tech story evolved. That has not been the case.

I would appreciate your opinion on MRVL as a future growth story, or should it fail to hold up to scrutiny, what 2 firms would fit my involvement in the story (if any). I hold NVDA, AMD, CLS, ASML, MSFT and PWR as representative of the buildout of the AI/Datacenter environment.

Thanks, as always, for your comments.

Q: If I hold NBIS and NVDA am I concentrating the same sector? My understanding is that NBIS owns hardware and "rents" or sells the use of that hardware. Who completes with NBIS? Is it Amazon and Google?

These seem, individually, as great companies but if AI sentiment shifts or another game-changing breakthrough happens it could be painful. Thoughts?

Q: Hi I currently hold these US companies. Can you please suggest your top 10 US companies that would compliment these the best for a long term hold? In order ideally. A growth rating 1-10 (10 being the best) and a risk rating 1-10(10 being the riskiest)

Thanks so much